1-Day Post-Reporting Performance vs. S&P 500 on EPS and Sales Surprise

1-Day Post-Reporting Performance vs. S&P 500 on EPS and Sales Surprise Companies that exceeded both sales and EPS expectations outperformed the S&P 500 by 2.4ppt the following day, which is the strongest performance since 4Q2018 and considerably higher than the historical average of 1.5ppt. Image: BofA US Equity & Quant Strategy

S&P 500 Index vs. U.S. Citi Economic Surprise Index

S&P 500 Index vs. U.S. Citi Economic Surprise Index The S&P 500 Index and the U.S. Citi Economic Surprise Index are often closely correlated. But right now, bad news is good news, until it’s not. Image: Morgan Stanley Wealth Management

Earnings Surprise

Earnings Surprise A strong 7% earnings surprise in the first quarter indicates robust performance by S&P 500 companies, which is likely to have a positive impact on investor confidence. Image: BofA Global Research

S&P 500 Earnings Surprise %

S&P 500 Earnings Surprise % Recent earnings surprises are slightly positive. Image: Morgan Stanley Research